3.1 Property and Financial Claims Flashcards
1
Q
Money provided by investors
A
Funds
2
Q
Anything of value that a person or business owns and therefore controls
A
Property
3
Q
Legal right to property
A
Financial Claim
4
Q
Receive
A
Acquire
5
Q
Buy something and agree to pay for it later
A
Credit
6
Q
Business or person selling the item on credit
A
Creditor
7
Q
Property or items of value owned by a business
A
Assets
8
Q
Financial claims to assets
A
Equities
9
Q
The owner’s claims to the assets of the business. Measured by the dollar amount of the owner’s claims to the total assets of the business.
A
Owner’s equity
10
Q
Creditor’s claims to the assets of the business; debts of a business.
A
Liabilities
11
Q
Assets = Liabilities + Owner’s equity
A
Accounting equation
